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Experts: So what's going on NOW with Silver?



Over the past few days Gold has pulled back from 1400+ down to around 1350. While that range of movement may not be too surprising, I'm still a little confused as to why all the momentum, which had been driven by the Fed's QE policies, suddenly went in a reverse direction on a dime.

But Silver has reacted even far, far worse. Silver dropped from 28+, all the way down to 25 -- over a 10+% drop. And the Gold/Silver ratio has widened back again from the 50s, to now back well over 53.5.

So something different is going on with Silver again. What explains a whopping double-digit price reversal at a time when the QE policy should be giving some momentum (or at least support) behind a stable Silver price?

Mere "profit-taking" alone would not explain a 10+ percentage drop (which is a plunge, and not simply a "correction").

Anyone know what is going on here with Silver?




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Keiser: Crash JPM, Buy Silver

Max Keiser has been leading a campaign to get people to buy silver in order to wreck JP Morgan's massive short position on the COMEX. He writes the following:

"JPM Silver manipulators are selling lots of naked contracts right now jamming the Silver price down – trying like hell to get a sub-$25 print at the close today (Nov. 19) – an option expiration month (thus avoided having to re-hedge their books on the roll using A LOT of cash – plus the possibility of having to disclose some realized/unrealized losses on their upcoming 10-Q).

"My understanding is the Silver vigilantes – pumped up with confidence after Andrew Maquire’s recent CFTC testimony blowing the whistle on JPM and HSBC – have spring loaded a major assault for later today. If successful, the Silver vigilantes buying power could take out a whole lot of stops all the way up through $30.

"If the Silver vigilantes are going to be successful they have to step up to the plate today and deliver a resounding blow to JPM. If not, then all the talk we hear coming out of Sprott and other places is mostly hot air, which is not to say that a failure today would put the kabosh on the ‘Crash JP Morgan Buy Silver’ campaign. Far from it.

"It justs means that we’ll have to be a little more patient. Anyone interested in speeding things up and putting JPM six feet under quicker – buy some ounces of physical. Every ounce off the market puts another Silver nail in JPM’s coffin.

"For readers of my blog, I am recommending no more than 1 or 2 ounces to purchase for political activism purposes. This is not an investment recommendation but a political action recommendation. If you are seeking investment advice – consult a registered investment advisor."

http://www.maxkeiser.com

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

the Dodd/Frank bill will do

the Dodd/Frank bill will do the same when contract limitations are met.

Perhaps. But that's within

Perhaps. But that's within the United States, but it does nothing to defang the maniacs in London.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

All the big manipulating US

All the big manipulating US banks buy their contracts in the US. when they have to shed 25,000 contracts here it will stop the manipulation. If that doesn't stop it then shortage will.

For those who want to

For those who want to know....
Here is Ted Butler in an interview.

http://www.chrismartenson.com/blog/chris-interviews-ted-butl...

bump for a 35 minute audible

bump for a 35 minute audible interveiw with Butler.. for those like VLBC who need to learn..

sierra,

why do you insist on capitalizing my username?

I'm just an ordinary poster on this forum,
nobody special,
just like you.

Only difference is ... I realize it,
and you don't!

stick to the conversation

stick to the conversation vlbc.. don't change the subject..

did you listen to the

did you listen to the interview? ofcourse not..

ahh you changed it.. I have

ahh you changed it.. I have seen it with all caps.. or maybe I didn't sorry my mistake. doing your research on the silver market yet? this lemming would really like to see you take part.

my username has never been in caps, homey.

Unlike you, (bad_karma, rebelsoul, etc.), I have not signed up half-a-dozen times, under different names.

And, not being a lemming, I am not taking part in the
"irrational exuberance".

Carry on, sierra, as if you were normal!

like I said.. there is going

like I said.. there is going to be a big I told ya so coming...

I'm waiting ....

... if silver ever gets to $1000.00, or 1:1 with gold,

or even $500.00,

in the next couple of years,

I will be the first to say:

"YOU DA MAN", sierra!

but, don't hold your breath!

we will see.. but all that

we will see.. but all that means is that you did not take part. That is the sad part.. you and your family could be set for a lifetime.. but won't be just because you have an agenda.. Just because you did not want to take the time to verify what Butler says.. Not ONE TIME have you refuted anything Butler has said.. NOT ONE TIME..

I wouldn't want to destroy the dreams

of delusional people who think that their 30 pieces of silver are going to make them multimillionaires!

30 pieces... lol. present

30 pieces... lol. present some facts.. tell us why it won't..

?????????

Someone please tell me where to buy silver coins. I'm just getting started. So far I've only visited bullion direct. Need to buy small amounts. 2 or 3 at a time right now.

Buying silver

Stick with junk silver ... you can trust Jason Hommel and Joyce also Tulving has good deals he's been in business for years.

http://jhmint.com/

https://www.momssilvershop.com/store/

http://www.tulving.com/index.html

:)

Very helpful. Thank you very much.

Libertybaby, I went all in

Libertybaby,
I went all in -in silver- in 2003. I read Ted Butler and fully understood the manipulation and what will be coming. I bought physical silver at 5.00 an ounce. For 7 years I have road out the ups and downs knowing what was going on inside the silver market.
I purchased my silver knowing that this was a long term investment. BOUGHT IT AND FORGOT IT!...

I have been reading Ted Butler for 7 years and went back and read all his work that went back to 2000.
EVERYTHING THE MAN WROTE ABOUT IS NOW COMING TO BE PROVEN CORRECT. Butler has a track record. www.butlerresearch.com Go subscribe and read for yourself.

regarding the recent drop in the price of silver, sit tight

I have followed gold and silver prices since the mid 70s. When metals enter a "once every 25 years" bull run, which is precisely what is happening now, expect corrections that behave just exactly like what we just saw. A 10% correction is not at all unusual, considering all factors. Now would be the time to "buy on the dip" rather than whine and speculate about it.

Expect silver to turn right around between now and year's end and rocket up again on an end of the year Santa Claus rally. I'm expecting $35 per oz. silver by late february or sooner.

We may see $45 per oz. silver by next summer, but this ride is not for the faint of heart. There will be drastic pull backs and corrections along the way, so temper nerves with steel, sit patiently through the corrections, then ride the next uptick.

Alot of money can bve made just by timing buys and sells during the cycles of these periodic corrections.

See http://kitcosilver.com - study the historical charts during extended bull markets for metals - it's a 25 year cycle, now bearing fruit.

My patriot blog has some posts on silver over at:
http://alligatorfarm.wordpress.com

kindest regards,

CK Hunter

Explore blacklisted news and the patriot essays of CK Hunter at:

http://alligatorfarm.wordpress.com

SteveMT's picture

Dollar index is at 79.088. Why? Euro must be under more

pressure with the PIGS contagion.

Stay calm. The metal you own will never be worth zero.

here

very interesting article on gold:
http://www.globalresearch.ca/index.php?context=va&aid=21924

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
http://www.dailypaul.com/203008/south-carolina-battle-of-cow...
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

The same thing as the last

The same thing as the last time this happened and someone started a post asking what is going on with gold and silver when they dropped after a large gain.

The Fed created new FRNs by buying US treasuries.

After observing the sudden spike in gold and silver prices, they put the brakes on.

No market moves in a straight

No market moves in a straight line.

That's what is happening. There's been a fantastic move up, and sometimes there will be fantastic moves down. The markets are responding to the situation in Greece/Ireland and the ECB's response and this is creating an opportunity for shorts to correct the extreme over-bought conditions of gold and silver.

This daily action should only be of interest to those who are trading.

If you want to know where things are headed you should be asking yourself why 30 year treasury bond yields are rising. Bond yields rise b/c of a market demanded need for higher return to offset risk. Risk of what? Default. The bond market is rejecting QE2 and that is probably playing into the gold and silver corrections a bit as well.

The fundamentals have not changed, only the ticker price.

http://jsmineset.com/2010/11/15/the-long-term-implications-o...

Ta,

Every decent man is ashamed of the government he lives under. -- H.L. Mencken

Blog: The Present in Plain Text
Listen to The Myo-Tonics on YouTube

Gold and silver going down

Gold and silver going down sharply on Friday has no relation to the QE. That was all gold value lost. When gold dropped $40, it dropped $1 because of a very slight rise in the value of the dollar. The news of QE has already gone through the markets and they moved accordingly. It'll take time for QE to fully take into effect.

Gold dropped a lot because of profit takers. Besides the dip and rebound that happened for the last month, it has been consistantly going up since August. The rebound was a new high which showed this bull is still bucking.

On to gold/silver ratio and why it is important...

Silver moves quicker than gold when there is movement in the markets. So when they're up, silver's up more. But when they're down, silver's down more. But when gold just nudges up or down, silver stays close to the same ratio as it was the last time it was significantly moved.

I didn't find it to be much of a surprise that the major investors wanted a bit of profit taking, especially because gold was around $1400, a new $100 increment all-time high. And the gold/silver ratio has a resistance around 50.

Don't worry when it goes down, be an optimist and buy low and sell high. What's it going to down to? I don't see gold going below $1300, maybe $1350, but probably a little above that. And then on it's way to $1500 and $1600.

But keep in mind, when gold goes up a lot, silver goes up at a higher pace. This is why long term (as gold goes up) silver will gain value because there will be more fast movements upward than downward.

In this chart you can see that when gold peaked in 1980, the gold/silver ratio was around 20. Think about that. As gold was peaking, silver was peaking even more. 2.5 times more than a ratio of 50 (what it's around now).

http://www.goldprice.org/gold-silver-ratio.html#36_year_gold...

This graph has an inverse movement with the price of gold. Scroll up from that graph and you'll see as gold plummeted in the summer of 2008, the gold/silver ratio went from about 52 to 82. Which means silver dropped a much higher percent.

Look at the bull market since early August and you'll see that the ratio went from around 65 to 50 quickly (3 months). So as gold goes up quickly, silver goes up quicker.

Any questions?

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fireant's picture

I think QE2 has alot to do with weakness in metals.

Maybe not Friday's action per se, but I believe it is a major underlying factor at the moment.
Markets have over-anticipated inflation and a weaker dollar. If Europe falls apart, the dollar will continue to rise, delaying inflation in the U.S. If this trend continues, it represents a major short/intermediate trend shift, which means lower metals, commodities, and stocks, and there will be excellent buying opportunities in the days ahead.

Undo what Wilson did

Bump

I spent a lot of time thinking about and writing this. Please someone respond. Am I right or am I wrong?

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